Throw Away Your Carrots and Sticks It’s time. If you still think that rewarding success through ever larger bonuses, pay rises or big prizes, it’s time for you to put these ideas away.Disciplining people for poor performance has also failed you, hasn’t it? Did results zoom because of your perfect disciplinary process? No, I bet it didn’t.
Most businesses are involved in producing complex sales or products. Research OVER DECADES shows that the “carrot & stick” approach will work only in businesses with low cognitive work processes.
As soon as you make the process complex in any way, the carrot approach of rewarding performance produced poorer results. The higher reward on offer in these circumstances, the poorer the performance, relative to control groups.
Yes, but you live in an emerging economy, I hear? Even here, all the research produced exactly the same results. Monetary reward for performance dropped when the task became complex.
Study after study found this, in all cultures. Business has yet to latch onto this concept!
Here’s my guide to motivating people:
Take money off the table for people by giving them true value for their labour.
Empower people by giving them scope to make decisions over their environment and work.
Coach & train people to improve their skills & knowledge, so that they have more control over improvements in productivity and performance
Let people know why they are doing what they are doing, that it makes a difference and why it is vital and important.
Find the courage within you to act consistently with your values, even when taking the easy route seems best.
These days you can find me on: YouTube: MervynMurray in search Twitter: @mervynmurray Email: Mervyn@masteri.co.uk Website: http://www.masteri.co.uk Putting: Mervyn Murray or MASTERi in your search engine